Market Outlook – March 19, 2020

Panic selling in the Indian markets yesterday pulled Sensex down by 5.59% to 28,869.51 pts and Nifty down by 5.56% to 8,468.80 pts due to fears of Coronavirus pandemic and global recessionary trends.

Crude Oil price rebounded after a drop of 24% to reach 18-year low level. WTI crude ended at $22.30 a barrel.

S&P 500 fell by 5.2% (it fell 9.8% before recovering) and Dow futures are trading at gains of 350 pts (at 6:15am) after trading 7.82% lower yesterday.

Stock watchlist for today:

1. Ashok Leyland – an approval for acquiring 19% stake in NBFC Hinduja Leylan Finance of ₹ 1,200 crore has been received from the Board.

2. Equitas Holdings – due to market volatility Equitas Small Finance Bank has delayed its IPO.

3. Indigo – Indigo and Vistara may cancel all flights amid fears of Coronavirus.

4. Reliance Jio – NCLT approved to transfer some liabilities from Reliance Jio to Reliance Industries.

5. Yes Bank – Promoter Madhu Kapur sold 2.48 crore shares at ₹ 65.07 per share declining her holding to 1.18% of the total share capital. The bank will start its operations today at 8:30 am, one hour earlier and extended the bank timings till 5:30 pm for senior citizens.

6. Motherson Sumi – it says that shutdowns in Germany and Spain has affected the customer base there, however, the overall business in Europe has not been hugely impacted. Only one out of 27 manufacturing units in China is not operational as of today. Plants and operations in US and India are running smoothly. The company wants to conserve cash and is not considering share buyback.

7. VodafoneIdea – with not reconsideration for its AGR dues, the company is struggling for survival. Its stock fell yesterday by 35%.

Nifty 50 now will exclude Yes Bank and instead Shree Cement will be included. Nifty Bank will include Bandhan Bank instead of Yes Bank.

Rupee also ended weaker yesterday to end at ₹ 74.26 against a dollar.

With global markets on a decline and global recessionary trends getting confirmed, pessimism prevails for the Indian markets.

MSc Finance graduate from the London School of Economics and Political Science (LSE)
Avatar for Ria Vaghela

Ria V Vaghela is an M&A Executive at RSM UK and an MSc Finance graduate from the London School of Economics and Political Science (LSE). She has worked at Jefferies, Dial Partners and 7i Capital prior to RSM UK gaining an experience of about 1.5 years. She has also worked as an Editor and Content Writer for The Representative Media. Apart from finance, she is interested in reading books on psychology and economics and also likes to paint and play lawn tennis

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